(a) whether the Directors of some Regional Rural Banks/co-operative banks
have been found to have diverted the depositors` money for personal use in
the share market and other activities;
(b) if so, the details of such banks, State-wise;
(c) whether the RBI has imposed penalties against such banks for violating
the rules;
(d) if so, the details thereof; and
(e) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a),(b),(c), (d) ) and (e) : A Statement is laid on the Table of the House.
Statement referred to in reply to parts (a), (b), (c), (d) and (e) of the Lok
Sabha Starred Question NO. 653 for 10th May, 2002 regarding
Directors of Banks tabled by Shri Sukdeo Paswan and Shri C.N. Singh.
(a) & (b): National Bank for Agriculture & Rural Development
(NABARD) undertakes statutory inspection of Regional Rural Banks
(RRBs) and Co-operative Banks once in two years under section 35(6) of
Banking Regulation Act, 1949 (AACS). NABARD has reported that during
the course of inspection they have not found any instance wherein the
Directors of RRBs/Central Co-operative Banks (CCBs) have diverted the
depositors` money for personal use in the share market. However during the
course of statutory inspection of the Nagpur District Central Co-operative
Bank (NDCCB) conducted with reference to the financial position of the
Bank as on 31st March, 2001 it was observed that the NDCCB has not
followed the guidelines of the Reserve Bank of India (RBI) for conduct of
trading in Government securities.
(c),(d) and (e) : NABARD have reported that the findings of the inspection
of NDCCB has been forwarded to RBI and Commissioner for Cooperation
and Registrar of Cooperative Societies, Government of Maharashtra for
initiating appropriate action. RBI has reported in this regard that they have
initiated action to supersede the Bank`s Board and an administrator has been
appointed for the Bank. The Registrar of the Cooperative Societies in
Maharashtra has been advised to conduct special audit of investment
transaction of all State and District Central Co-operative Banks in the State.